US locks down Russia’s central bank as sanctions hit economy

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GGood Morning.

Traders hold their breath this morning ahead of a hot day expected in the markets.

An escalation in sanctions over the weekend – coupled with Vladimir Putin’s dire nuclear threat – has fueled uncertainty about the progress of Ukraine’s invasion.

The ruble has fallen to a new record low against the dollar while the opening of the Moscow Stock Exchange has been delayed.

While there was a mixed performance for Asian equities overnight, the FTSE 100 and European equities appear to have tumbled on the open.

Wai Ho Leong, an analyst at Modular Asset Management, said: “A terrible weekend… it’s hard to make decisions as the conflict in Ukraine heats up again.”

5 things to start the day off right

1) BP divests stake in Russian oil giant Rosneft The FTSE 100 company says the war in Ukraine has prompted it to “fundamentally reconsider” its 19.75 percent stake.

2) Sanctions are raising fears of a bank run in Russia as the country prepares for the ruble’s ‘free fall’ Ban on Swift payments network set to spark currency crash

3) The West has finally taken off the gloves on Putin and restored our honor Ukraine’s valiant resistance has provoked a moral turmoil that must be seen and counted in hand-to-hand combat

4) Delays at UK ports double as Brexit bureaucracy slows customs Economists have warned that Russia’s invasion of Ukraine threatens to prolong the disruption

5) Aeroflot is canceling all flights to European destinations after the EU banned Russian jets The European Commission announced for the entire bloc of 27 countries on Sunday to block Russian-owned planes from entering the bloc’s airspace or landing at its airports

what happened overnight

Stocks in Asia were mixed, but US and European futures were significantly lower as President Vladimir Putin escalated tensions by ordering Russia’s nuclear forces to be placed on high alert.

US futures fell, with the S&P 500 contract down 2.5 percent and the Dow Industrials contract down 1.6 percent. Futures for Germany’s DAX fell 3.2 percent and futures for the FTSE 100 fell 1.3 percent.

Japan’s Nikkei 225 index rebounded from earlier losses and rose 0.1 percent. Hong Kong’s Hang Seng lost 0.8 percent, the Shanghai Composite Index was down 0.1 percent, while the S&P/ASX 200 in Sydney gained 0.7 percent.

Comes today

Company: BB Healthcare Trust, Bunzl, RHI Magnesita (annual results); hay (intermediate results); Associated British foods (Trade Update)

Economy: Chicago Purchasing Managers Index (US)

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